The North Carolina Court of Appeals recently issued a decision strengthening the “sealed container” defense available to non‑manufacturing sellers in products liability cases. In Weaver v. AMV Holdings LLC, the court found in favor of a vape retailer and distributor after a lithium‑ion battery malfunctioned in a customer’s pocket, causing serious burns. For retailers and distributors — particularly those dealing with lithium‑ion batteries — this decision underscores the continued viability of sealed container defenses.

A bipartisan coalition of seven state attorneys general (AG) reached a settlement with the Chinese-owned messaging and payment platform WeChat under which the company committed to take steps to combat the use of its platform in fentanyl-related money laundering. The agreement focuses on improving law enforcement cooperation, preserving and producing user data in response to law enforcement requests, and proactively detecting illicit activity on the service. The settlement is part of a broader enforcement campaign by state AGs to push online platforms to adopt proactive measures to monitor illicit activity on their services and improve cooperation with law enforcement.

California recently finalized changes to its Proposition 65 (Prop 65) warning rules that included significant changes to short-form warning statements for product labels. These changes directly affect nicotine‑containing products — including e‑cigarettes, e‑liquids, oral nicotine products, and other consumer goods that can expose consumers to nicotine.

In Sztrom v. SEC, the U.S. District Court for the District of Columbia confirmed that the U.S. Supreme Court’s 2024 decision in SEC v. Jarkesy, which curtailed the Securities and Exchange Commission’s (SEC) ability to seek civil penalties in its administrative forum, does not eliminate the agency’s long-standing ability to pursue industry bars through administrative follow-on proceedings. The opinion underscores that, even after Jarkesy and other recent limits on agency power, the SEC may still use its in-house process to determine whether to bar previously enjoined defendants from the securities industry, with independent review limited to the courts of appeals.

On March 11, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) signed a memorandum of understanding (MOU) that both agencies describe as “historic.” The MOU is intended to reset the relationship between the agencies by reducing turf battles, avoiding duplicative regulation, and providing clearer, technology-neutral oversight — particularly in markets where securities and derivatives regimes overlap, including crypto. While it does not change either agency’s statutory authority, it creates a formal framework for coordination that will materially affect how policy, examinations, and enforcement play out in practice.

State attorneys general (AGs) from across the political spectrum have refused to join the U.S. Department of Justice’s (DOJ) midtrial settlement with Live Nation. The bipartisan multistate coalition vowed to “keep fighting this case without the federal government,” underscoring that state AGs are increasingly prepared to part with the DOJ and take the lead in complex enforcement actions.

Political activities sit at the intersection of law, policy, and reputation. Companies operating in highly regulated industries cannot avoid political law issues, and it is frequently more complex than expected.

This quarterly newsletter highlights a few practical issues we are seeing with clients and a handful of developments worth keeping on the radar.

Virginia Attorney General (AG) Jay Jones has joined an ongoing lawsuit by 23 Democratic AGs challenging Consumer Financial Protection Bureau (CFPB) Acting Director Russell T. Vought’s interpretation of the CFPB’s statutory funding mechanism that would leave the agency without operating funds.

Washington, D.C. and Atlanta – March 2026 – Troutman Strategies (Strategies) and Troutman Pepper Locke’s Regulatory Investigations, Strategy + Enforcement (RISE) team announced the addition of three professionals who deepen the firm’s federal, state, and regulatory capabilities: Jason A. Smith with the RISE team in Washington, D.C. and New York, Audra Hill as state affairs coordinator in Georgia, and Brian Mann as a government affairs specialist on the federal team in Washington, D.C.

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Thursday, March 26 • 12:00 – 1:00 p.m. ET

Gene Fishel will be speaking on the “Cyber Threats – Are You Prepared?” webinar, being held on March 26.

Join professionals from McGriff, the US Secret Service, Troutman Pepper Locke, and A.B. Data to learn more about fraud and cybercrimes. Organizations of all sizes…